I don't like the idea. My youngest child is 11 and can barely write in cursive (we do teach her things at home, but they are more academic things. I would have thought that was one thing the school would have done for us.)
Not all people have a computer around all the time. Some people like to write by hand.
I think this is a decision that is poorly chosen.
Some years ago, our school cut the weekly spelling test. They said they were doing "Integrated Learning" and that spelling would be taught in conjunction with reading, writing, English and Social Studies. Despite My Man and I eventually getting sick of this, and giving our middle daughter spelling tests at home (after about a year of realizing it wasn't working at school) she still can't spell.... and has a Bachelor's Degree in English! (Thank heaven all her school work for college was done on a computer and she knows how to use a spell check.)
A few years later, after many of the parents complaining, they started spelling as a subject again. My youngest child has had spelling lessons since First Grade now. My 11 year old can spell better than her older sister.
Our youngest was also reading and writing before her 3rd birthday, so there is some difference in all children. But, I still feel the lack of spelling as a subject disrupted my middle daughter's learning process at the time when she was best able to learn to spell. She works on it still, a lot. But, its hard to make up for lost learning.